EKI Energy delivers Q1 FY2022 revenues of Rs. 193 crores

EKI Energy Services Limited (EKI Energy) (BSE: 543284), one of the leading companies in the carbon credit industry in India, announced its Q1 FY2022 results. The Company continued its growth momentum and reported total revenues of Rs. 193 crores in Q1 FY2022.

Q1 FY2022 Performance Highlights:

- Revenues from operations of Rs. 193 crores (Rs. 191 crores for full year FY2021)
- EBITDA of Rs. 48 crores; margins expanded to 24.7% (Rs. 25 crores for full year FY2021)
- PAT of Rs. 36 crores with margins of 18.5% (Rs. 19 crores for full year FY2021)
- Robust performance supported by:

* Increasing global awareness for net zero emissions
* Higher demand for carbon credit driven by changing regulations to control emissions level
* Improved carbon credit pricing

Commenting on the business performance, Chairman and Managing Director, Mr. Manish Dabkara: During Q1 FY2022, we continued to build upon the strong growth momentum of the previous year and delivered another quarter of stellar performance. These strong numbers are driven by increasing market awareness for net zero emissions, increased demand from major markets especially from America and European countries and improved pricing of carbon credits. During the quarter we delivered robust growth across segments. Our major business segment Climate Change & Sustainability Advisory and Carbon Offsetting reported a revenue of Rs. 193 Cr in Q1 FY2022 as compared to Rs. 190 Cr in full year FY2021. The growth has been supported by significantly improved margin levels. The Company has reported a EBITDA margins of 24.7% while PAT margins also improved to 18.5%.

As part of our ongoing business expansion and entering into new geographies, during the quarter EKI Energy has entered into a non-binding agreement to acquire a 51% stake in SustainPlus Rise. This company is a Pune-based multi-disciplinary advisory and consultancy firm specialized in climate resilience services. The acquisition will strengthen EKI Energy's operations with forward integration into the area of sustainability reporting for exchange listed companies.

Furthermore, as part of the efforts to reward our employees by fully aligning their interests with EKI Energy and retaining talent, during the quarter the board of directors has approved a scheme for the issuance of 6.5 Lakh shares under employee stock option plan (ESOP).

Going forward, in line with our business expansion strategy, we will continue to identify new projects which can reduce carbon emissions, enhance biodiversity and deliver measurable benefits to the environment and society. With strong business fundamentals, innovative offerings and an increasing client base, we are confident of maintaining growth momentum and creating a value for all shareholders."

Shares of EKI Energy Services Limited was last trading in BSE at Rs. 1727.65 as compared to the previous close of Rs. 1645.4. The total number of shares traded during the day was 13200 in over 11 trades.

The stock hit an intraday high of Rs. 1727.65 and intraday low of 1726. The net turnover during the day was Rs. 22802220.

Source : Equity Bulls

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